Ethereum is working on a recovery after rebounding from the $1,800 range, but it still faces significant resistance, and the overall trend remains bearish. While short-term momentum has seen slight improvements, the potential for continued upward movement is still unclear.
**Technical Analysis**
By Edris Derakhshi
**The Daily Chart**
The daily chart indicates ETH is stabilizing around the $1,900 mark following a sharp rejection from the $2,200 level in late March. The asset remains significantly below the 200-day moving average, which is sloping downward near the $2,800 area, confirming a bearish market structure on a larger scale. The latest bounce has brought the price back to the $1,900 resistance zone, but buyers have not yet shown strong follow-through. The RSI is recovering from oversold levels, indicating short-term relief, but there is no bullish divergence or momentum breakout to support a lasting trend reversal. A decisive daily close above $1,950–$2,000 would signal that buyers are starting to regain control.
**The 4-Hour Chart**
On the 4-hour chart, ETH is trading within a horizontal consolidation pattern, with the lower boundary at $1,800 and the upper boundary near $2,200. After the recent sell-off, the price rebounded into the $1,900 supply zone but encountered immediate resistance and is now pulling back slightly. Furthermore, the RSI reached near-overbought conditions during the bounce and is now cooling off, suggesting possible consolidation or another test of the $1,800 area. If ETH fails to break above the upper boundary of the pattern, a further drop to sweep the $1,780–$1,750 liquidity may become more likely. A confirmed breakout above $2,200, however, would invalidate the pattern and suggest a short-term bullish reversal.
**Sentiment Analysis**
By Edris Derakhshi (TradingRage)
**Exchange Reserve**
Ethereum’s exchange reserve has continued its multi-month decline, reaching a new low of around 18.3 million ETH held on trading platforms. This consistent drop suggests long-term holders and institutions are moving assets into cold storage or staking, thereby reducing immediate sell pressure. Despite the bearish price action, the supply on exchanges is not increasing, which historically has indicated a bullish divergence when accompanied by reversal patterns. The low reserves could act as a supply constraint once demand returns, but currently, the lack of bullish momentum means this on-chain trend is supportive rather than decisive.
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